The Smithville Mayor and Board of Aldermen approved a new budget ordinance on second and final reading during a special meeting last week at city hall.
While the budget for the coming fiscal year totals $6,642,988, the property tax rate will remain the at 64.9 cents per $100 of assessed value, and water and sewer rates will remain the same as well.
City water customers will still pay $5.00 per thousand gallons, while rates for customers outside the city limits will remain at $7.50 per thousand gallons. City sewer customers will continue to pay $5.00 per thousand gallons plus the flat usage rate of $3.62.
Although the city had planned to change the $2.67 per thousand gallons rate it charges the DeKalb Utility District to $3.00 per thousand, but found that that would not be allowed under a 2014 chancery court order. “The only thing that has changed since the first reading is the DUD rate,” said City Administrator Hunter Hendrixson at the meeting. “The way I understand it, we have to present a reason for the rate hike. I have talked with J.R. Wauford (the city’s utility engineer) and they are working with us on that.”
The new budget plan includes pay raises for employees, a new full-time officer in the police department, a new sanitation truck, new equipment for the fire department, and matching funds to rebuild Holmes Creek Bridge.
City hourly and salaried employees, except for any police officers who are due to get an increase in pay under the department’s wage scale, will receive a three percent raise.
The police department wage scale, which was an eight step plan, will now consist of six steps, with the last two steps being eliminated to help keep police department salaries from getting too much higher than other city employees. The police department will change officer’s shifts and schedules and create a new full-time position to help reduce overtime in the department.
The budget contains $100,000 toward the purchase of a new rescue pumper truck for the fire department. Fire Chief Charlie Parker asked that the city replace the fire department’s oldest fire truck, a 1992 model, as well as their 20-year-old rescue truck and cargo van. The city plans to apply for a grant to help with the remaining cost of the truck.
The city’s contribution to Justin Potter Library increased from $500 to $5,000 in the new budget.
General Fund Capital outlay projects for 2016-17 total $692,000, and include:
•Fire Department equipment- $116,000
•New sanitation truck and trash containers- $350,000 (unspent from 2015-16 year)
•Street Department-Holmes Creek Bridge Project & Unspecified- $60,000
•Police Department Car & Unspecified- $30,000
•New Animal Shelter- $75,000 (unspent from 2015-16 year)
•Airport: Taxiway Initial Design & Unspecified- $20,000 (Mostly funded by grants)
•City Hall Building (Unspecified)- $25,000
•Public Works-Buildings & Grounds (Unspecified)- $5,000
•Parks and Recreation- $5,000
•Financial Administration- $1,000
•Legislative-$5,000
Water and Sewer projects including the following:
•Sewer Plant Rehabilitation- $2,750,000
•Tube Settlers for Water Plant- $40,000
•Backhoe-$80,000
City officials expect to end the 2015-16 budget year in the black in the general fund by $153,724 and in the water and sewer fund by $76,399. Total general fund revenues for 2016-17 are projected to be $3,127,010, not enough to cover total estimated expenditures of $3,976,981.
The city plans to appropriate $849,971 from the general fund surplus if needed to balance the budget. The city property tax rate is budgeted to generate $820,000.
The water and sewer fund is expected to show a surplus of $157,925 by years end with total revenues at $2,622,600 and expenditures of $2,464,075. But the 2016-17 water and sewer fund is supported by a $500,000 grant for sewer plant rehabilitation which is counted as income to the city for just one year.
The city stands to lose hundreds of thousands of dollars in revenue when the DeKalb Utility District launches its new water plant, which could come before next summer. In the budget t
The city has reduced projected revenues from the sale of water to the DeKalb Utility District from $765,000 for the year ending June 30, 2016 down to $400,000 for half the year 2016-17. City officials say the loss of income experienced when the DUD opens its own water treatment plant may force the city to look at ways of cutting spending or raising new funds to make up the difference.
